As a practitioner and a researcher, I am proud to witness firsthand how economic diplomacy transforms the continent into a global investment destination. Two countries I have worked in/with that demonstrate this transformation are Côte d'Ivoire and Uganda. Let’s explore how their economic diplomacy approaches drive growth and attract investors.
Part 1: Côte d'Ivoire, a West African Economic Powerhouse As one of the fastest-growing economies in West Africa, Côte d'Ivoire has been proactive in using economic diplomacy to boost its economy. Here's what sets it apart: -
Finance and Logistics Hub: Abidjan, the economic capital of Côte d'Ivoire, is home to the Regional Stock Exchange (#BRVM). This makes Abidjan a central financial hub for the region. The country has a well-developed banking sector, with local and international banks operating in the region, providing a robust financial ecosystem. The Port of Abidjan, one of the busiest in West Africa, is a critical regional trade gateway. The country has invested heavily in infrastructure, including roads, airports, and energy, making it a logistical and trade hub.
- Agricultural Diplomacy: Côte d'Ivoire, the world’s largest cocoa producer, accounting for over 40% of global cocoa production, has strategically leveraged its agricultural dominance to strengthen its position worldwide. The International Cocoa Organization (#ICCO) is a global institution made up of the world's largest cocoa-producing and consuming countries, and it is headquartered in Côte d'Ivoire.
Through agricultural diplomacy, the country has forged international partnerships with key players in the cocoa and agricultural value chains, including the European Union, the United States, and emerging markets like China and India.
- Attractive Investment Climate: Côte d'Ivoire offers incentives for foreign investors, including tax breaks, free trade zones, and streamlined business registration processes via the Center for Investment Promotion of Côte d'Ivoire (#CEPICI).
The government has actively promoted public-private partnerships (PPPs) to fund infrastructure projects, attracting significant foreign direct investment (FDI). Côte d’Ivoire has secured partnerships with major global players such as China, the European Union, and the United States, further strengthening its position as a key economic hub in West Africa.
- Regional Leadership: Through its prominent role in the Economic Community of West African States (#ECOWAS) and the African Continental Free Trade Area (#AfCFTA), Côte d'Ivoire drives regional integration and creates a unified market for businesses. Its influence in these organizations enhances its economic significance in the region. Côte d'Ivoire’s intensive economic diplomacy has turned it into one of Africa’s fastest-growing economies, making it a model in Africa.
Uganda has positioned itself as a regional leader by leveraging its strategic location, vibrant agriculture sector and industrialization goals, rich natural resources, and attractive incentives. Here’s how:
- Regional Integration: Uganda is strategically located within East Africa, making it a key transit point for trade routes to and from neighboring countries (Kenya, Rwanda, Tanzania, South Sudan, and DRC). The country is a member of the East African Community (#EAC), the Common Market for Eastern and Southern Africa (#COMESA), and the African Continental Free Trade Area (#AfCFTA), which boosts regional and continental trade and economic cooperation.
- Strong Agriculture Sector and Industrialization Goals: Uganda’s agriculture industry is a key driver of its economy and the backbone of its export earnings. The country is one of Africa’s top #coffee, #tea, and #banana producers. Uganda is a key supplier in the East African food market and global markets in the EU, China, the U.S., and Middle Eastern countries. Uganda has endorsed encouraging #exports policies and facilitated investments in #industrialization via the Presidential Advisory Committee on Exports and Industrial Development (#PACEID).
- Rich natural resources: With recent oil discoveries, Uganda is positioning itself as an energy hub in East Africa, leveraging its oil reserves and renewable energy potential to attract global investment. Furthermore, Uganda is rich in minerals and rare earth elements (#REEs), including gold, cobalt, copper, and lithium, which are essential for global industries like electronics and renewable energy. Uganda has attracted foreign investment from China, the EU, and the U.S., negotiating deals and technology transfer agreements and positioning itself as a key player in Africa’s mineral supply chain.
- Investment Incentives: Uganda offers attractive incentives, particularly in priority sectors like agriculture, manufacturing, energy, and infrastructure. Through the Uganda Investment Authority (#UIA), the government provides several benefits, such as duty-free imports on machinery, industrial land allocation, and repatriation of profits. Additionally, partnerships with regional and global investors have driven foreign direct investment (#FDI) in key industries, strengthening Uganda’s position as an emerging business hub in East Africa. Uganda has become a key player in East Africa’s economic transformation by aligning its economic ambitions with regional development and global partnerships.
The Bigger Picture: Africa’s Economic Diplomacy in Action Countries with intense economic diplomacy will lead Africa’s economic transformation. For investors, this means access to untapped markets, a young and dynamic workforce, and a chance to be part of Africa’s transformative journey.
